Financial Crime World

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Sweden’s Counter-Terrorism Financing Regulations Under Scrutiny: A Follow-Up Report for 2020

A recent report has evaluated Sweden’s implementation of the Financial Action Task Force (FATF) Recommendations, highlighting areas of compliance and room for improvement in its counter-terrorism financing regulations.

Compliance Assessment

The report assessed Sweden’s progress in implementing the FATF Recommendations and found that the country is largely compliant with most requirements. However, there are some areas where Sweden falls short of full compliance.

Areas of Progress

  • Risk Assessment: Sweden has made significant strides in assessing risk and applying a risk-based approach to counter-terrorism financing (R.1).
  • National Cooperation: The country has strengthened national cooperation and coordination to combat money laundering and terrorist financing (R.2).
  • Criminalization: Sweden has effectively criminalized money laundering (R.3) and terrorist financing (R.5).

Areas for Improvement

  • Targeted Financial Sanctions: Sweden’s implementation of targeted financial sanctions related to terrorism and terrorist financing (R.6) is partially compliant, with some gaps in its designation and listing procedures.
  • Regulation and Supervision: The country’s regulation and supervision of financial institutions (R.26) and DNFBPs (R.28) require further improvement.

Progress in Implementing Measures

  • Prevention of Misuse of New Technologies: Sweden has made progress in implementing measures to prevent the misuse of new technologies (R.15).
  • Transparency and Beneficial Ownership: The country has also ensured transparency and beneficial ownership of legal persons and arrangements (R.24-25).

Conclusion

The report highlights that Sweden’s compliance with the FATF Recommendations is crucial in preventing the misuse of financial systems for terrorist financing and money laundering purposes. The country must continue to strengthen its regulations and supervision to ensure a robust framework for combating these threats.

Overall, while Sweden has made significant progress in implementing the FATF Recommendations, there are still areas where it needs to improve its compliance. The country’s authorities must prioritize these issues to ensure that Sweden’s financial system remains secure and resilient against terrorist financing and money laundering risks.